To finance company expansion, the Small Industries Development Bank of India (SIDBI) said on Tuesday that it intends to raise Rs 5,000 crore through a rights issue in the upcoming fiscal year.

The refinancing firm for SME finance is seeing a robust expansion in credit, and he stated that money would be needed to expand the business even further.

On the fringes of the introduction of a lending scheme for Jan Aushadhi Kendras here, SIDBI chairman and managing director S Ramann stated that the bank hopes to raise Rs 5,000 crore through a rights issue in the upcoming fiscal year.

The government, he added, is the largest shareholder, and SIDBI has contacted them to ask for their involvement in the rights offering.

As of March 31, 2023, the Government of India owns 20.85% of the company. In addition, the shareholding of State Bank of India is 15.65%, and as of March 31, 2023, the shareholding of Life Insurance Corporation of India (LIC) was 13.33%. Other Public Sector Banks (PSBs) and organizations own the remainder.

The individual stated that the organization's loan portfolio is over Rs 5 lakh crore, and they hoped to conclude the fiscal year with approximately Rs 5.2 lakh crore.

Presently, SIDBI's loan exposure is 17% of the total amount extended to MSMEs nationwide. According to Ramann, the Fund of Funds for Startups (FFS) has pledged Rs 9,500 crore to support the nation's startup ecosystem.

On January 16, 2016, the Prime Minister introduced FFS in accordance with the Startup India Action Plan. It had granted permission to contribute a total of Rs 10,000 crore to different Alternative Investment Funds (AIFs) that are SEBI-registered.

FFS was established with the specific goal of assisting in the development and expansion of businesses inspired by innovation. By investing in the capital of AIFs registered with SEBI, it helps startups meet their funding needs.

According to him, the Rs 9,500 crore pledge has prompted over 100 AIFs to raise an additional Rs 56,000 crore.